2021 will be another unique year for the United Kingdom. The country is expected to see many changes with Brexit and a (hopefully swift) Covid-19 recovery.
The UK will aim to push new boundaries with green economic innovations, increase global trade opportunities and hope to see a flurry of new start-ups to counteract a damaged economy and effects from Covid-19. This blog outlines the opportunities, business growth sectors and an outlook of how any business can look to work closely with various aspects of the British economy.
Early Brexit Issues
It will take some time for UK customs clearance at airports and ports to build an efficient system and tackle the short-term build up of administration tasks. The UK media continues to report backlogs of goods stuck at ports.
Brexit and the Future
The UK will aim to go more global in 2021. One example of this is the replacement of the EU Erasmus education scheme with the £100 million ‘Turing scheme’. The scheme aims to connect global universities (including Europe) and British students.
Brexit and Tourism
On the whole tourism will remain largely unaffected by Brexit. That said, there will be some additional actions required of visitors and longer-term stays within Europe may be affected. Read our blog to learn more: https://www.welcometoama.com/news/how-brexit-will-impact-tourism-in-2021
Brexit and Trade
Strategically the UK will aim to achieve a hybrid model that is open to global economies, with unique access to EU markets.
Brexit will also force the UK to be quicker at implementing green initiatives. For example the SMMT reports that 8 out of 10 cars manufactured in the UK are currently exported, with 54% of them going to the EU. The EU will allow car trade to continue (with certain supply chain conditions) tariff free for a set period of time, but expect to increase tariffs on vehicles that are not electric.
By 2030 the UK will aim to ban the manufacturing of diesel and petrol cars. Forcing car manufacturers to speed-up green Investment due to the UK gaining preferential tariffs rates trade of electric vehicles.
UK Goes Green in 2021
The UK was the first major economy to pass net zero emissions law, which requires the UK to bring all greenhouse gas emissions to net zero by 2050. In November 2021 the UK will host the United Nations Climate Change Conference in Glasgow.
UK Start-Up Economy
The UK saw a start-up investment boom in 2020. According to a much-publicised report last month, the Government agency Tech Nation raised a record $15bn (£11bn) for tech startups in 2020, more than the rest of Europe combined.
Another recent survey conducted by Opinium found that “one in five Britons want to start a business in 2021 as turmoil from the pandemic sets entrepreneurial spirits stirring” — leading to hopes that a new wave of entrepreneurs who will help lift the economy out of its historic downturn. Start-up ambitions are strongest among the young, with more than a third of 18 to 34-year-olds hoping to launch a venture this year, according to the polling firm.
The UK has a healthy startup business culture. The Guardian reported that, according to Companies House data, the number of businesses launched in the UK since 2008 has increased year-on-year with 2015 seeing a record 608,110 new businesses registered.